THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, October 14, 1994 TAG: 9410140535
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: STAFF REPORT
LENGTH: Medium: 58 lines
Mirroring a national trend, Virginia had one of the biggest drops in jobless claims nationwide for the month of September, the Labor Department reported Thursday.
The number of Americans filing first-time claims for unemployment benefits declined by 5,000 last week, pushing one claims indicator to its lowest point in more than five years, the government said. Virginia, down by 565, ranked among the top five states showing the biggest drop in claims.
The Labor Department said the number of initial jobless claims declined to a seasonally adjusted 314,000 last week, marking the fifth decline in the past six weeks.
The steady downward trend pushed the four-week moving average for claims down to 316,000, its lowest level since the average was at 315,250 for the week of May 20, 1989.
States with the largest declines were Georgia, down 807; Florida, down 703; North Carolina, down 657; Illinois, down 571; and Virginia.
Reporting the largest increases were California, up 2,148; Arkansas, up 1,547; Texas, up 1,506; and Wisconsin, up 1,382.
Unemployment filings were likely interrupted by the Labor Day weekend, possibly skewing some of the numbers, said William F. Mezger, senior economist at the Virginia Employment Commission.
``People had filed for furloughs that actually took place after Labor Day,'' he said. ``They didn't file for claims until after the furlough was over. There are all sorts of combinations of when they file, but they filed after they got back to work.''
Mezger said any aberration, like a large layoff by a big employer, can affect claims figures. Therefore, economists consider the four-week average a better gauge of hiring trends than the more volatile weekly number because it smooths out fluctuations.
Last Friday, the government reported the unemployment rate dropped to 5.9 percent in September, the lowest level in more than four years. Both the decline in weekly jobless benefit claims and the steady fall in the unemployment rate are indications of the strong economic growth this year.
The decline in the unemployment rate has raised concerns among some economists that the nation is fast approaching the level where tight labor markets will start pushing up wage demands and make inflation worse. However, the Clinton administration and many private economists say that there is no evidence that wage costs are beginning to get out of hand.
The Labor Department said 25 states and territories posted increases in claims in the week ended Oct. 1 while 28 had decreases. State figures lag a week behind the national ones and are not adjusted for normal seasonal variations. MEMO: The Associated Press contributed to this report.
KEYWORDS: UNEMPLOYMENT by CNB